CAE nabs $300M contract with U.S. air force despite Trump’s Canadian procurement ban

Montreal-based flight simulator maker CAE Inc. has secured a $300 million contract with the U.S. Air Force, despite President Donald Trump's attempt to ban Canadian companies from government procurement. The deal extends CAE's role as the primary contractor responsible for training U.S. aircrews on the C-130 Hercules military transport plane, a role it has held since 2018.

CAE's training will continue at air force bases in Little Rock, Arkansas, as well as Georgia, Wyoming, Minnesota, and Missouri through 2035. The announcement was made despite the September 16 decree by Trump, which banned the federal government from procuring Canadian items. It is unclear whether the presidential order covers services, not just goods, or if Canadian companies with U.S. subsidiaries are included in the ban.

This contract comes as the trade war between Canada and the United States escalates after negotiations between the two countries broke down.